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NSW construction insolvencies have surged to 1,567 builder collapses in a single financial year, placing the state at the centre of Australia’s worsening building crisis. With ASIC data showing NSW accounts for 43 percent of all national construction failures, the pressure on housing supply, subcontractors, and homeowners is intensifying. This report examines how more than 3,500 construction companies entered insolvency nationwide in FY2025, and why the pace is accelerating rather than stabilising. We break down the collapse of long-standing Sydney builder Novati Constructions, the ripple effects on subcontractors owed millions, and the structural pressures driving the sector into distress — including fixed-price contracts signed before cost inflation, rising labour expenses, and interest rate increases that have reshaped project financing. Key areas covered include: Why fixed-price contracts during material cost surges are pushing otherwise viable firms into administration The domino effect across subcontractors, suppliers, and partially completed residential projects The growing tension between NSW’s 377,000-home target and a shrinking construction workforce With thousands of businesses entering external administration and distressed builders exceeding 5,000 over a 12-month period, the implications extend beyond individual companies to housing affordability, employment, and state economic stability. Australia Roof Report delivers in-depth analysis of housing markets, construction risk, and the economic forces shaping Australia’s property sector. Contact: australiaroofreport@gmail.com © Australia Roof Report #NSWConstruction #AustralianHousingCrisis #BuilderCollapse #ConstructionInsolvency #AustraliaProperty